457(b) Plan Highlights
457(b) Plan Needville Independent School District 457(b) Plan
Highlights Visit NBSbenefits.com/403b for additional information
Congratulations! You are eligible to participate in the 457 retirement plan provided by the Needville Independent School District 457(b). Contributing to a 457 plan will give you peace of mind through financial security during your retirement. A 457 plan allows you to contribute a portion of your compensation as a pre-tax or post-tax (Roth) contribution (if allowed by your Employer) in order to save for retirement. Participation in the 457 plan is completely voluntary. If you are already contributing to the 457 plan, now is a perfect time to increase your contributions. What is a 457 Plan?
A 457 plan is a tax-deferred compensation plan provided for employees of certain tax-exempt, governmental organizations or public education institutions. What are the benefits of contributing to a 457 Plan? LOWER TAXES The 457 contributions you make can be on a pre-tax basis. This means that the money used to invest in the 457 plan is not taxed until the funds are withdrawn. For example, if your federal marginal income tax rate is 25%, and you contribute $100 a month to a 457 plan, you have reduced your federal income taxes by nearly $25. In effect, your $100 contribution costs you only $75. The tax savings grow with the size of your 457 contribution. TAX-DEFERRED GROWTH In your 457 plan, interest and earnings grow tax-deferred. This means that your interest will grow tax-free until the time of your withdrawal. The compounding interest on your 457 plan allows your account to grow more quickly than money saved in a taxable account where interest and earnings are taxed each year. TAKING THE INITIATIVE Contributing to a 457 plan helps you take control of your future retirement needs. Other sources of retirement income, including state pension plans and Social Security, often do not adequately replace a person’s salary upon retirement. A 457 plan can be a great way to supplement your income at retirement. POSSIBLE TAX CREDITS Pre-tax contributions may put you in a lower tax bracket reducing your overall tax rate.
HIGHER LIMITS Annual contribution limits are much higher than those of an IRA. How much can you contribute to a 457 Plan?
You may elect to save: · 100% of your income up to in 2016 · Extra $6,000 if age 50+ · Limits are completely separate 403(b) or 401(k) accounts
from
those
made
to
REQUIRED MINIMUM DISTRIBUTIONS (RMD) Distributions are required at age 70 ½. Exceptions may apply. HOW TO ENROLL IN THE PLAN Your employer has provided investment option(s) for you. A list of approved vendor(s) and the Salary Reduction Agreement (“SRA”) can be found by visiting the National Benefit Services website at NBSbenefits.com/403b or by contacting NBS (contact information below).
Once you have chosen an approved vendor, please open a 457 account directly with them. To begin investing, send the completed SRA form to NBS who will work with your employer to begin contributions. INVESTMENT CHOICES Annuity contracts made available through insurance custodial accounts through a retirement account allowed in 457 plans. You will need to contact the comprehensive listing and information regarding investment options.
ROTH You may also choose to invest part of your income on an after-tax (Roth) basis. Roth contributions are taxed at the time of the investment though contributions and earnings grow tax-free until withdrawn. Qualified distributions will allow you to withdraw your money tax-free.
NBS Retirement Service Center
Needville Independent School District
8523 S. Redwood Rd. West Jordan, UT 84088 800.274.0503 ext. 5
Plan Contact Person:
Jennifer Michalec 16227 Hwy 36
Contact NBS if you have questions about
Needville, TX 77461
the retirement plan
1.979.793.4308
companies or custodian are vendor for a the available
457(b) Retirement Plan Highlights Continued
TRANSFERS As a participant in the 457 plan, you have the option to move funds, or “transfer” tax-free between different vendors within the same plan. ROLLOVERS You also have the option of rolling retirement funds from previous employers to your current employer’s plan thus simplifying retirement management. DISTRIBUTIONS FROM THE PLAN You or your beneficiary will be able balance when one of the following occurs: 1. Retirement 2. Termination of Employment 3. Attainment of Age 59 ½ 4. Total Disability 5. Death
to
withdraw
your
vested
The vendors may require additional paperwork. LOANS You may borrow up to 50% of your vested balance up to $50,000 (whichever is less). Contact your current vendor about their specific loan provisions. UNFORESEEABLE EMERGENCY An in-service unforeseeable emergency distribution may be allowed if you satisfy certain criteria. Contact NBS for more information about the requirements. If you take funds for an unforeseeable emergency you are required to stop making contributions for 6 months.
Updated: 1/27/2017
NBS Retirement Service Center
Needville Independent School District
8523 S. Redwood Rd. West Jordan, UT 84088 800.274.0503 ext. 5
Plan Contact Person:
Jennifer Michalec 16227 Hwy 36
Contact NBS if you have questions about
Needville, TX 77461
the retirement plan
1.979.793.4308
Highlights Visit NBSbenefits.com/403b for additional information
Congratulations! You are eligible to participate in the 457 retirement plan provided by the Needville Independent School District 457(b). Contributing to a 457 plan will give you peace of mind through financial security during your retirement. A 457 plan allows you to contribute a portion of your compensation as a pre-tax or post-tax (Roth) contribution (if allowed by your Employer) in order to save for retirement. Participation in the 457 plan is completely voluntary. If you are already contributing to the 457 plan, now is a perfect time to increase your contributions. What is a 457 Plan?
A 457 plan is a tax-deferred compensation plan provided for employees of certain tax-exempt, governmental organizations or public education institutions. What are the benefits of contributing to a 457 Plan? LOWER TAXES The 457 contributions you make can be on a pre-tax basis. This means that the money used to invest in the 457 plan is not taxed until the funds are withdrawn. For example, if your federal marginal income tax rate is 25%, and you contribute $100 a month to a 457 plan, you have reduced your federal income taxes by nearly $25. In effect, your $100 contribution costs you only $75. The tax savings grow with the size of your 457 contribution. TAX-DEFERRED GROWTH In your 457 plan, interest and earnings grow tax-deferred. This means that your interest will grow tax-free until the time of your withdrawal. The compounding interest on your 457 plan allows your account to grow more quickly than money saved in a taxable account where interest and earnings are taxed each year. TAKING THE INITIATIVE Contributing to a 457 plan helps you take control of your future retirement needs. Other sources of retirement income, including state pension plans and Social Security, often do not adequately replace a person’s salary upon retirement. A 457 plan can be a great way to supplement your income at retirement. POSSIBLE TAX CREDITS Pre-tax contributions may put you in a lower tax bracket reducing your overall tax rate.
HIGHER LIMITS Annual contribution limits are much higher than those of an IRA. How much can you contribute to a 457 Plan?
You may elect to save: · 100% of your income up to in 2016 · Extra $6,000 if age 50+ · Limits are completely separate 403(b) or 401(k) accounts
from
those
made
to
REQUIRED MINIMUM DISTRIBUTIONS (RMD) Distributions are required at age 70 ½. Exceptions may apply. HOW TO ENROLL IN THE PLAN Your employer has provided investment option(s) for you. A list of approved vendor(s) and the Salary Reduction Agreement (“SRA”) can be found by visiting the National Benefit Services website at NBSbenefits.com/403b or by contacting NBS (contact information below).
Once you have chosen an approved vendor, please open a 457 account directly with them. To begin investing, send the completed SRA form to NBS who will work with your employer to begin contributions. INVESTMENT CHOICES Annuity contracts made available through insurance custodial accounts through a retirement account allowed in 457 plans. You will need to contact the comprehensive listing and information regarding investment options.
ROTH You may also choose to invest part of your income on an after-tax (Roth) basis. Roth contributions are taxed at the time of the investment though contributions and earnings grow tax-free until withdrawn. Qualified distributions will allow you to withdraw your money tax-free.
NBS Retirement Service Center
Needville Independent School District
8523 S. Redwood Rd. West Jordan, UT 84088 800.274.0503 ext. 5
Plan Contact Person:
Jennifer Michalec 16227 Hwy 36
Contact NBS if you have questions about
Needville, TX 77461
the retirement plan
1.979.793.4308
companies or custodian are vendor for a the available
457(b) Retirement Plan Highlights Continued
TRANSFERS As a participant in the 457 plan, you have the option to move funds, or “transfer” tax-free between different vendors within the same plan. ROLLOVERS You also have the option of rolling retirement funds from previous employers to your current employer’s plan thus simplifying retirement management. DISTRIBUTIONS FROM THE PLAN You or your beneficiary will be able balance when one of the following occurs: 1. Retirement 2. Termination of Employment 3. Attainment of Age 59 ½ 4. Total Disability 5. Death
to
withdraw
your
vested
The vendors may require additional paperwork. LOANS You may borrow up to 50% of your vested balance up to $50,000 (whichever is less). Contact your current vendor about their specific loan provisions. UNFORESEEABLE EMERGENCY An in-service unforeseeable emergency distribution may be allowed if you satisfy certain criteria. Contact NBS for more information about the requirements. If you take funds for an unforeseeable emergency you are required to stop making contributions for 6 months.
Updated: 1/27/2017
NBS Retirement Service Center
Needville Independent School District
8523 S. Redwood Rd. West Jordan, UT 84088 800.274.0503 ext. 5
Plan Contact Person:
Jennifer Michalec 16227 Hwy 36
Contact NBS if you have questions about
Needville, TX 77461
the retirement plan
1.979.793.4308
